Government Walks A Tightrope In Labour Relations

The scales of justice reflect the challenges facing law-makers in the context of labour and employment laws. Balancing the interests of employers and employees is difficult. Many employment laws were enacted decades ago when businesses operated in very different circumstances. There has long been the need for an overhaul of these laws. By enacting four new labour codes, the government has strived to meet this need. The objectives are to simplify the maze of existing labour laws, improve India's ranking in the Ease of Doing Business Index, ensure increased regulatory compliance by businesses and protect the rights and interests of employees.

The new codes consolidate 29 existing laws relating to wages, conditions of employment, social security, trade unions and occupational health and safety. Existing laws variously de ne wages, which has led to confusion and litigation. The codes provide a uniform definition of the term wages, which should reduce litigation and ease